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Zambian kwacha rebasing

15 December 2012 15:42:05 +0000

As you will be aware, if you’re a Zambian client, the kwacha will be rebased on 1 January 2013, making 1000 old kwachas equal to 1 new kwacha. In keeping with Bank of Zambia guidelines and requirements, this will affect our invoicing as follows:

  • Invoices we issue between 15 and 31 December 2012, inclusive, will be issued in old kwachas, but will also include a value in new (rebased) kwachas. If you pay the invoice on or before 31 December, you will need to pay the old kwacha amount. If you pay the invoice on or after 1 January, you will need to pay the new kwacha amount.
  • Invoices we issue between 1 January and 30 June will be in new kwachas, but will include the value in old kwachas for comparison.
  • Where we have used the “K” symbol we will use the “KR” symbol (“kwacha rebased”) between 1 January and 30 June, inclusive. After that we will once again revert to using just the “K”.
  • Where we have used the currency code ZMK, we will use ZMW on and after 1 January.
  • Any account balances carried over into 2013 will be converted to new kwachas (ZMW) by dividing by 1000, and rounding as per BOZ guidelines. Similarly, previous account balances, although billed and paid for in old kwachas, will be converted to new kwachas for the purpose of calculating your running account balance in new kwachas.
  • Invoices will be rounded off to the nearest 5 ngwee to facilitate cash payments by those clients who prefer to pay in cash. CORRECTION, 2013-01-30: Invoices will not be rounded. If you are paying in cash in person, your balance owing will be rounded to the nearest 5 ngwee at the time of payment. If you deposit cash to our bank account, please round to the nearest 5 ngwee. Whether the rounding is up or down, we will record the actual payment and carry forward a balance of the difference (1 or 2 ngwee) between your payment and the actual invoice amount. If the rounding is down, this will not adversely affect the state of your account with us.
  • The cover emails to which invoices are attached (and all reminders, expiry notices, etc.) will reflect amounts only in old kwachas in 2012, and only in new kwachas in 2013. These emails are only an unofficial summary of the official invoice, which is the PDF document attached to the invoice email.
  • We will, in due course, publish new rates on our website. There will be no increase in our rates at this time — i.e., all rates in new kwachas will be the same as the old rates, divided by 1000.

If you have any questions about this, please let us know. Thank-you.

Kwacha rates published

27 October 2012 05:55:19 +0000

We have published our kwacha rates on our website four our Zambian clients. If you have any questions, please let us know!

New Bank of Zambia currency regulations

15 June 2012 09:57:44 +0000

On 12 June we learnt of The Bank of Zambia (Currency) Regulations, 2012, that were apparently passed on 7 May, came into effect on 18 May, and were posted on the BOZ website on 7 June. Despite the fact that our US dollar-based invoices have always included, according to previous law, a kwacha value (the other option on a foreign currency-based invoice is [or was] to include a conversion rate), it appears now that the mere mention of a foreign currency is illegal, and punishable by significant fines and/or jail terms.

Although NinerNet has clients in quite a number of countries around the world, in Zambia we operate through a locally-registered, turnover tax company named (believe it or not) “NinerNet Communications“. (Doing so significantly improves our ability to operate competitively in Zambia, and we have always been quick to point out to prospective Zambian clients that our invoices can be settled locally in kwachas.) As a result, our business in Zambia must be considered domestic, and so we are subject to this new law.

Unfortunately this news arrived too late for us to reconfigure and re-program our invoicing system in time for June’s invoicing. Therefore we will be adding prominent notices to our June invoice emails and the invoices themselves which indicate that, despite the presence of dollar amounts on the invoice, we “demand to be paid” in kwachas in accordance with section 4 of the new Regulations. To be clear, to comply with this law we can no longer accept payment in US dollars (or any other foreign currency) on “domestic transactions” in Zambia. In fact, we will be closing our dollar account in July.

By 1 July we will be issuing invoices denominated in kwachas only. We’ll also be adding a rates page for kwachas to our website, rather than simply referring clients to the US dollar rates. We’ll send a follow-up email to advise you of the new, fixed rates when they’re published. We have not finalised these yet, but we anticipate basing the new rates on an even exchange rate that hedges slightly against future variations. This will result in a price increase of about 87ยข … oops, I mean K4500 per month for those clients on our most popular hosting plan, with the benefit being that your invoice won’t fluctuate from month to month.

I welcome your feedback on this issue. The commenting system on this blog is not working (yet!), so please contact me through the contact form on the NinerNet website to let me have your thoughts. Thanks.

Craig

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This is the corporate blog of NinerNet Communications. It's where we post announcements, inform and educate our clients, and discuss issues related to the Internet (web and email) hosting business and all that that entails. This includes such concomitant industries and activities such a domain registration, SSL certificates, online back-up, virtual private servers (VPS), cloud hosting, etc. Please visit our main website for more information about us.

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